Date: 12-22-2020

Case Style:

Case Number: 3:15-cr-00155-RNC

Judge: Robert N. Chatigny

Court: United States District Court for the District of Connecticut (New Haven County)

Plaintiff's Attorney: United States District Attorney’s Office, New Haven, Connecticut

Defendant's Attorney:

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Description: New Haven, Connecticut securities fraud criminal defense lawyer represented Michael Gramins, age 38, from North Carolina, with defrauding mortgage-backed securities customers of Nomura Securities International, where he was employed.

According to the evidence presented during his trial, Gramins was an Executive Director on the Residential Mortgage Backed Securities (“RMBS”) Desk at Nomura Securities International (“Nomura”) in New York where he principally oversaw Nomura’s trading of bonds composed of sub-prime and option ARM loans. Between 2009 and 2013, Gramins and others defrauded customers of Nomura by fraudulently inflating the purchase price at which Nomura could buy a RMBS bond to induce their victim-customers to pay a higher price for the bond, and by fraudulently deflating the price at which Nomura could sell a RMBS bond to induce their victim-customers to sell bonds at cheaper prices, causing Nomura to profit illegally. Gramins trained subordinates to lie to customers, provided them with the language to use in deceiving customers, and encouraged them to engage in the practice.

The victims of this scheme included hedge funds, insurance companies, and asset managers from Connecticut and elsewhere.

On June 15, 2017, a jury found Gramins guilty of one count of conspiracy to commit securities and wire fraud, and not guilty of one count of securities fraud and five counts of wire fraud. The jury could not reach a verdict as to one count of securities fraud and one count of wire fraud.


This matter has been investigated by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Federal Bureau of Investigation, the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the Federal Housing Finance Agency’s Office of Inspector General.

The case is being prosecuted by Assistant U.S. Attorneys David Novick and Heather Cherry.

CONSPIRACY TO DEFRAUD THE UNITED STATES
(1)
CONSPIRACY TO DEFRAUD THE UNITED STATES
(1s)
CONSPIRACY TO DEFRAUD THE UNITED STATES (Conspiracy to Commit Offenses Against the United States)
(1ss)
CONSPIRACY TO DEFRAUD THE UNITED STATES (Conspiracy to Commit Offenses Against the United States)
(1sss)
MANIPULATIVE AND DECEPTIVE DEVICES - Securities Fraud
(2-3)
MANIPULATIVE AND DECEPTIVE DEVICES; Securities Fraud
(2s-3s)
MANIPULATIVE AND DECEPTIVE DEVICES (Securities Fraud)
(2ss-3ss)
MANIPULATIVE AND DECEPTIVE DEVICES (Securities Fraud)
(3sss) Mistrial
FRAUD BY WIRE, RADIO, OR TELEVISION
(4-10)
FRAUD BY WIRE, RADIO, OR TELEVISION; Wire Fraud
(4s-9s)
FRAUD BY WIRE, RADIO, OR TELEVISION (Wire Fraud)
(4ss-9ss)
FRAUD BY WIRE, RADIO, OR TELEVISION (Wire Fraud)
(9sss)

Outcome: Minute Entry for proceedings held before Judge Robert N. Chatigny: denying 595 Motion for Order as to Michael Gramins (2); Motion Hearing as to Michael Gramins held on 12/17/2020 re 595 MOTION for Order Re: Directing the Government to Make Further Redactions From Its Memorandum In Aid of Sentencing filed by Michael Gramins; Sentencing as to Michael Gramins held on 12/17/2020. Total Time: 3 hours and 52 minutes (Court Reporter Darlene Warner.) (Bozek, M.) (Entered: 12/18/2020).

Defendant was sentenced to two years probation, the first six months of which Gramins must spend in home confinement.

In a settlement announced by the U.S. Securities and Exchange Commission in July 2019,

Plaintiff's Experts:

Defendant's Experts:

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